What Is My Liquor Store Worth?

Liquor stores are a consistent performer in small business M&A. The combination of a regulated license, recession-resistant demand, and relatively simple operations makes them attractive to buyers — especially first-time business owners and immigrant entrepreneurs.

Here's how to understand what your liquor store is worth.

Typical Valuation Ranges

Most liquor stores sell for 2.5x to 4x SDE.

Factors that push toward the higher end:

• Premium location with strong foot traffic
• Valuable liquor license (especially in states with limited licenses)
• Revenue above $1M with consistent growth
• Strong wine and craft spirits selection (higher margins)
• Delivery or online ordering revenue
• Long-term lease with favorable terms
• Minimal competition within a mile radius

Factors that push toward the lower end:

• Commodity-focused inventory (beer and bottom-shelf liquor only)
• Declining neighborhood or increased competition
• Short remaining lease
• Owner works all shifts personally
• Cash-heavy business with unreliable records
• License restrictions or compliance issues

The License Factor

In many states, liquor licenses are limited in number and extremely valuable. A license in a restricted market can be worth $50K to $500K+ independent of the business. Buyers factor license value into the overall purchase price.

In states with readily available licenses, the license itself adds minimal value — but the permit-holding business still benefits from the regulatory barrier to entry.

Know your license's standalone market value. It's a significant component of total business value.

Key Metrics Buyers Evaluate

Revenue Per Square Foot

Strong liquor stores generate $500–$1,000+ per square foot annually. Higher revenue per square foot indicates a well-curated, high-turnover inventory.

Gross Margin

Average liquor store gross margins run 25–35%. Stores with strong wine programs, craft spirits, and premium selections push toward 35%+. Beer-heavy stores trend lower.

Inventory Turns

How many times per year does your inventory turn over? 8–12 turns annually is healthy. Low turns suggest overstocking or slow-moving inventory tying up cash.

Product Mix

Buyers evaluate the breakdown: beer, wine, spirits, and non-alcohol items. Higher wine and spirits percentages indicate better margins and a more defensible customer base.

Delivery and Online Revenue

Stores with active delivery programs (Drizly, in-house delivery, or online ordering) have an additional revenue channel that younger buyers find attractive.

How to Increase Your Liquor Store's Value

1. Upgrade your wine and spirits selection. Higher-margin products improve profitability and attract more affluent customers. Curated selections differentiate you from the chain down the street.
2. Add delivery. Offer local delivery through your own site or a third-party platform. This opens a revenue stream that didn't exist at scale five years ago.
3. Secure your lease. 5+ years remaining. Location is everything for retail.
4. Clean up your records. Liquor stores with cash transactions and murky books face automatic discounts from serious buyers. Implement POS tracking for every transaction.
5. Build loyalty. Wine clubs, tasting events, and loyalty programs create repeat customers and community.
6. Reduce shrinkage. Implement inventory controls, camera systems, and employee accountability measures. Shrinkage directly reduces your bottom line.

Ready to Find Out What Your Liquor Store Is Worth?

Browse the valuation multiples guide for current industry data, or schedule a free call for a confidential valuation.